Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank all Senators for their comments and contributions to what was a very constructive debate. We are all very aware of the challenging situation we are currently facing but I assure the House that my Government colleagues and I are sparing no effort to lessen the negative impacts of the Russian invasion of Ukraine. It is not possible or desirable for the Government to respond to every unfavourable price move on global markets as the country does not have the resources to do so, especially given our current underlying levels of debt. Furthermore, history teaches us that chasing inflationary pressures with ever more Government spending would, in fact, be counterproductive. While the Government is responding, and will continue to respond, we have to be clear that it is not possible to cushion citizens and businesses from the full economic impact of the war in Ukraine and many of the factors driving up costs are outside our control. Inflation is rising around the world with year-on-year inflation rates in the OECD at 7.2% in January and at 6.5% in the G20 area. This compares to 5.6% here in Ireland in February.

A large portion of the animal feed used on Irish farms is imported and about 30% of world wheat and maize exports originate in Russia and Ukraine. In the past year, the price of key ingredients used to manufacture animal feed has doubled, as a number of Senators mentioned. All of the chemical fertiliser used on Irish farms is imported and over 20% of that originates in Russia. The cost of fertiliser for farmers has more than doubled this year compared to last year. The combined impacts of these changes, especially the uncertainty around fertiliser price and availability, will affect fodder supply in the coming winter and next spring and could, in turn, potentially lead to animal welfare and food production issues if we do not act collaboratively to address it.

We have introduced a number of measures in recent weeks to reduce the impact of the international crises on the agrifood sector. Given the seriousness and urgency of the situation, I have put in place a rapid response team in my Department, chaired by the Secretary General, to actively monitor the impacts on agrifood supply chains, to design appropriate responses and mitigation measures and to contribute to the whole-of-government response to this crisis. I have also established the national fodder and food security committee to examine how best to advise the sector to manage the disruptions. I am grateful for the contribution of all stakeholders and representatives working together on that committee.

Last week, I announced a targeted intervention package for the tillage sector worth over €12 million with the aim of supporting the growing of additional tillage and protein crops and the establishment of multispecies swards. This package is aimed at producing more native crops and crops with a low demand for chemical fertiliser, which is limited in supply as a result of the invasion, while also reducing our dependency on imports.These targeted measures will help build resilience against the expected impact of what is happening in Ukraine. This three-pronged approach will contribute towards the expected deficit in tillage and protein crops. It will also assist farmers to deal with the challenges related to both the availability and price of animal feed and fertilisers.

The tillage incentive scheme will incentivise farmers to grow additional crops such as barley, oats and wheat this year. For an area of crops to be eligible, farmers must grow more tillage than they did last year. In addition, the land must not have been tilled for grain in 2021. The scheme is targeted at increasing the overall tillage area and making a real impact on increasing our supply. A payment of €400 per hectare is proposed.

The support for protein crops, which have been a success story in recent years, will encourage farmers to grow more protein crops and build on what we have achieved so far in areas being planted for peas, beans, lupins and combi-crops. Some €3 million is already provided under the protein aid scheme and a further €1.2 million will be provided. There is an appetite among farmers to grow more protein crops but under the current structure, the number of crops grown is divided by the amount available so the more farmers grow, the more that amount drops. I wanted to provide certainty and I did not want any disincentive for farmers to do what we want them to do this year. We have put a floor on that scheme, guaranteeing a payment of €300 per hectare for all protein crops and €150 per hectare for combi-crops. We are providing this guaranteed payment rate to encourage farmers to grow those crops and give them certainty around that.

The multispecies sward scheme, including support for red clover, is aimed at reducing nitrogen fertiliser while maintaining forage yields. Multispecies swards have been proven to reduce our dependency on chemical fertiliser while maintaining forage output. I am very confident there will be strong farmer interest in this initiative. I see lots of potential to progress this in the years ahead but we have to step that up as much as we can this year, given the backdrop. I am particularly pleased with the co-operation received from our independent agri-retailers and co-operatives, which will play a vital role in the operation of this measure. It will support the establishment of approximately 12,000 ha of multispecies swards and approximately 4,000 ha of red clover silage mix.

The total package is projected to cost in the region of €12.2 million, with €10 million for the tillage incentive scheme, €1.2 million to guarantee the payment of €300 per hectare of protein crops and an additional €1 million for the multispecies sward scheme. I take this opportunity to remind farmers to declare the relevant crops on their 2022 basic payment scheme, BPS, applications. If farmers have submitted their BPS application for this year and they now want to take on additional land, they can log back in to agfood.ieto make any amendments, but they must make sure they do so before the deadline of 16 May 2022.

On the EU response, the European Commission announced on 23 March, via the communication, "Safeguarding food security and reinforcing the resilience of food systems", a range of actions to enhance global food security and support farmers and consumers across the EU in light of rising food prices and input costs. The communication sets out actions in three areas. First, it presents immediate actions to safeguard food security in Ukraine and around the world. Second, it addresses the challenge of food stability in the EU's food system, with a range of measures to support our farmers and maintain affordability for our citizens. Third, it confirms the EU agenda to make our food system sustainable and resilient in the years to come. The package includes an allocation of €15.8 million in exceptional aid for Ireland, which can be topped up by national funding. We are examining how to best mobilise this support as soon as possible, taking account of the detailed requirements and conditionality attached to this exceptional aid provision. The EU package also includes a new temporary crisis framework for state aid and plans to deploy market safety net measures to support specific markets, including private storage aid for pigmeat.

Pig farmers were experiencing a significant cost-price squeeze before this war crisis and very significant losses are likely to be incurred by the Irish pig sector over the next period. Indeed, they already have been. Feed price and availability is critical to the welfare of pigs on farm. Earlier this month, I announced an emergency aid scheme for commercial pig farmers of €7 million, which opened for applications on 7 March. The maximum payment under this scheme is €20,000 per undertaking, which is in line with de minimisstate aid requirements. The first payments to pig farmers under this scheme were issued last week and are arriving in bank accounts this week. This is an urgent, short-term response to assist producers that would be viable but for the extreme current and urgent circumstances we are facing. It will allow space for a more medium-term adjustment to market signals. This scheme is augmented by intensified efforts by Bord Bia to promote quality-assured Irish pigmeat in the domestic and export markets, with dedicated media advertising campaigns under way nationally, as well as EU-funded pigmeat promotion programmes in key export markets. Teagasc has also intensified the dedicated, ongoing advisory supports it provides to pig farmers and is actively engaging with farmers to explore the options and supports available to them.

My Department is in ongoing contact with the main banks and the Strategic Banking Corporation of Ireland regarding the current situation. The advice remains that pig farmers should engage with their banks, and they have been doing so. We know from the protests today the particular pressures farmers are under. I met yesterday with the Irish Strategic Investment Fund on the possibility of developing a suitable instrument to manage market volatility, which is particularly acute for pig farmers at the moment.

I emphasise to pig farmers that help is available to them. Animal welfare, and, indeed, human welfare, issues can arise quickly when people are under pressure. Where farmers are feeling that pressure and anticipate animal welfare issues, I encourage them to seek husbandry and veterinary advice on the development of an action plan to manage and avoid this risk. If a farmer is coming under pressure they should make contact with my Department's dedicated animal welfare helpline. All contact details are available on my Department’s website. Teagasc is engaged in supporting pig farmers at the moment as well. I met with the farmers outside the Department earlier today and will meet them again this evening. It is important that we bring clarity to them so they can plan for the time ahead. I am very conscious of that and will seek to bring that clarity as soon as possible.

On 22 March, the Government approved the general scheme of the agricultural and food supply chain Bill 2022, which will provide for a new office called the office for fairness and transparency in the agrifood supply chain. The events of recent weeks have reminded us all of the fragility of the agrifood supply chain, and it is now more important than ever to ensure that there is an independent voice to promote and, indeed, enforce the principles of fairness and transparency in that chain. This new office will bring greater transparency all along the agricultural and food supply chain. It will do this by performing a price and market analysis and reporting function, publishing reports on price and market information on all sectors in the chain. It will engage with retailers, processors, wholesalers, farmers, fishers and others on matters affecting fairness and transparency in the chain.

I and my Government colleagues are acutely aware of the short-term challenges arising for farming households and businesses, and we have taken steps across the board at Government level to help address these. These include the increase in the living alone allowance, the package of electricity cost measures and the package for supporting fuel costs. As Minister for Agriculture, Food and the Marine, I am conscious of the real challenges for agriculture, farming and fishing at the moment. We have taken a number of steps to try to address these to support farmers through the time ahead and back family farms. We will continue to do that and will continue to assess the situation. It is important that we work together because this is a challenge like we have not seen previously. There is war on European soil for the first time in two generations. That is the reality facing us and that changes things. We have seen that already. We are all feeling it in our daily lives. Farmers and food producers are feeling it too, and we will all feel it and encounter these challenges over the remainder of the year. It is important that we plan ahead and work together. It is important that the Government, and I as Minister, back family farms and fishers. We will do that. We have been doing that and will continue to do so. It will be more challenging than ever to produce food but it is more important than ever that we continue to do it. That is why I have acted by putting together the fodder and food security committee, as well as the support packages. The key message to farmers is to consider the situation. They should have a 14-month horizon, looking from now up until the end of next April. They must plan ahead and plan their breeding and their feeding. It is important that this happens within each farm.We are moving into the grass growing season now. Come next autumn and winter, we will have what we will have. We will not have the usual safeguards to be able to import extra. We will not have the usual safeguards if we are short of fodder and of importing extra grain to be able to produce fodder. As Minister, I will not be able to grow more grass at that stage, I may well not be able to do anything and may well have big challenges in the supply chain. It is important now to plan in order that we are secure up until next April. We must look at that horizon and work together in doing so. That is what we are all working on. I will continue to back family farmers and fishers on that challenge and ensure that we continue to play the really important role of producing food domestically and for countries and citizens throughout the world at this very challenging time.